Mark Bishop has been the CEO of Acadian Timber Corp. (TSE:ADN) since 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Mark Bishop's Compensation Compare With Similar Sized Companies?
Our data indicates that Acadian Timber Corp. is worth CA$278m, and total annual CEO compensation is CA$214k. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at CA$93k. We examined companies with market caps from CA$131m to CA$523m, and discovered that the median CEO total compensation of that group was CA$836k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Acadian Timber has changed from year to year.
Is Acadian Timber Corp. Growing?
On average over the last three years, Acadian Timber Corp. has grown earnings per share (EPS) by 13% each year (using a line of best fit). Its revenue is down -2.4% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important. It could be important to check this free visual depiction of what analysts expect for the future.
Has Acadian Timber Corp. Been A Good Investment?
Acadian Timber Corp. has generated a total shareholder return of 9.8% over three years, so most shareholders wouldn't be too disappointed. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
It looks like Acadian Timber Corp. pays its CEO less than similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. The total shareholder return might not be amazing, but that doesn't mean that Mark Bishop is paid too much.
It's good to see reasonable payment of the CEO, even while the business improves. But it would be nice if insiders were also buying shares. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Acadian Timber (free visualization of insider trades).
Important note: Acadian Timber may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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